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1. Which typo of insurer is owned by multiple policyholders?
A) A captive insurer.
B) A mutual insurer.
C) A proprietary insurer.
D) A composite insurer.
2. What is the legal standing of the Charioted Insurance Institute's Code of Ethics?
A) It has full force of Jaw except where overridden by pre-existing Acts.
B) It is to be applied in conjunction with existing Acts.
C) It has full stand-alone legal recognition.
D) It does not have the force of law.
3. If an insurer invokes the cancellation clause to cancel a policy mid-year due to a change in the risk, how much of the premium, if anything, is normally returned to the policyholder?
A) The full year's premium less a fixed nominal charge.
B) None of the premium.
C) The full year's premium.
D) A pro rata amount.
4. The main purpose of the fair treatment of customers initiative is to
A) make firms more competitive.
B) apply fixed times for responding to claims and complaints.
C) ensure all firms have a similar service standard.
D) build consumer confidence in the financial services industry.
5. How does insurable interest arise, if at all. when an insurer arranges reinsurance?
A) The insurer is considered to have insurable interest by virtue of its liability to pay claims.
B) Insurable interest does not arise.
C) Insurable interest is created by statute.
D) The policyholder is considered to have assigned the insurable interest to the insurer.
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: D | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: A |
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